Many blockchain developers think outside the box (which is fabulous), but let's fill the box first! Use currently available tech that can give normal people an on-ramp - "Tokenized and liquid Real-estate investments for every income level".

[GENERAL] Name and surname of main applicant

Anthony Stachowitz

[GENERAL] Email address of main applicant

mallorca.investment.token@gmail.com

Additional applicants

Fernando Castello Roberts

Marcel Pelzer

John-Christian Shatraw

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

6

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.” .

N/A

[GENERAL] Will your project’s output/s be fully open source?

Yes

[GENERAL] If NO, please describe which outputs are not going to be open source. If YES, please write “Project will be fully open source.”

N/A

[METADATA] Category of Proposal

RealFi

[METADATA] SDG rating

SDG goals:

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

SDG subgoals:

Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets.

Key Performance Indicator (KPI):

Proportion of small-scale industries with a loan or line of credit.

#proposertoolsdg

[IMPACT] Please describe your proposed solution.

Real Word Asset Solution

Since the emergence of Smart Contracts and DeFi, ingenious individuals have found ways to generate value seemingly out of thin air. This approach proved successful for those who grasped its intricacies and had a high-risk tolerance, resulting in substantial profits. The smart people wisely secured their gains before the recent crash.

While I hold no grudges against those who profited and I hope Defi finds it's way, I don't know how DeFi will look in the long term.

What I do understand is that the next wave of blockchain adoption, necessary for mass adoption, will not come from gamblers like many of us today. To achieve widespread acceptance, we must combine blockchain technology with a real-world asset that has stood the test of time. That asset is Real Estate.

Real Estate doesn't inherently require blockchain, but blockchain technology streamlines Real Estate investing, making it accessible to all. Previously, Real Estate investing was limited to the wealthy due to the complexities of funding the projects. With blockchain, particularly Cardano, we can tokenize a million dollar property, enabling anyone to invest with any amount of money.

For instance, we can divide a $3 million investment into 60,000 tokens, each valued at $50. Although, the beauty of tokenization lies in its secondary market flexibility, allowing tokens to be divided into any denomination and sold to anyone, including Americans (as ruled in the SEC vs LBRY appeal). Through the secondary market, anyone with any amount of money can participate in the Real Estate market.

Another advantage of Real Estate investing lies in the tangible value of the underlying asset. When someone buys a token for $50 and subsequently sells it, the token's value remains tied to the underlying asset. In contrast to certain DeFi projects where initial token holders gain significant advantages, a Real Estate token purchased shortly after the initial sale on the secondary market is likely to retain its value close to the initial purchase price because of its relationship to a hard asset.

Before discussing how we plan to address this problem, let's explore another advantage that blockchain technology brings to the masses when combined with Real Estate: the ability to borrow money against the underlying asset while retaining ownership. While some may recall the losses incurred in DeFi lending schemes, Real Estate offers an underlying asset that secures borrowed funds, rather than relying on tokens created out of thin air. Real Estate assets rarely lose half their value, enabling borrowers to leverage up to 50% of the asset's worth and establishing a safe position. Borrowing against assets was previously reserved for the wealthy or creditworthy, but with tokenized Real Estate, anyone can access funds.

Mallorca Investment Token Solution (MIT)

While there are currently other blockchain-based Real Estate projects, MIT stands out for several reasons.

Other projects utilize investors' funds to purchase existing properties for renovation or rental purposes. Investors' returns depend on profits from property sales after renovation or rental income, which is a common practice. However, potential returns are limited by the costs involved in property renovation and rental rates based on market conditions. Let's be honest—the current global economy is uncertain, with commercial Real Estate facing challenges due to remote work becoming mainstream. The stability of the housing market relies on the general economy, which is currently unfavorable.

At MIT, we offer distinct advantages over the traditional Real Estate market. Here are a few:

1. The core team comprises Real Estate and marketing experts - A builder and architect, real estate agent, and marketer:
2. Fernando Roberts: An architect and general contractor with 30 years of experience in designing residential and commercial properties. He is the owner of FGC Architects and a Project Management company.
3. Marcel Pelzer: With 15 years of experience in worldwide sales and purchasing, he owns Safehouse The Real Estate Group.
4. John-Christian Shatraw: Closely involved in bridging real-world assets with blockchain technology, he has over 9 years of experience as a freelance SEO and PPC expert.
5. Our investors and token holders have the advantage of entering at the ground floor, benefiting from equity growth throughout the development process, from raw land to the finished product or home.
6. Rental properties offer a dual benefit, with equity growth mentioned earlier, along with monthly income from rental.
7. We specialize in Mallorca vacation properties, which have experienced double-digit percentage growth in recent years, providing lucrative opportunities.
8. Numerous old family plots are currently being sold by residents.

The Mallorca Property Prices & Market Report 2023 reveals that properties regularly sell for millions of Euros and above, further indicating the potential for significant returns.

[IMPACT] How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

According to the "about section", Products & Integrations focuses on the following areas:

• Creation or improvement of different products that provide value to the Cardano community and wider ecosystem.
• Integrations with other existing services, products and protocols that improve the end user experience. This could mean giving the user more options or making something easier to use that benefits the wider ecosystem.

Lets explore how the MIT addresses both areas:

Creation or improvement of different products that provide value to the Cardano community and wider ecosystem.

MIT is a product that brings value to the Cardano community and the broader ecosystem by granting access to an investment opportunity traditionally reserved for individuals with significant bank accounts. By implementing an investment token that enables participation in real estate investments at any price point, we are democratizing access to one of the world's largest wealth-building economies.

Real estate is widely recognized as a vehicle for generational wealth creation.

Integrations with other existing services, products and protocols that improve the end user experience. This could mean giving the user more options or making something easier to use that benefits the wider ecosystem.

Cardano serves as the ideal platform to introduce the MIT. Since the Hard Fork Combinator (HFC) event enabled token creation as an integrated feature of the chain, it seems tailored for projects like MIT. Unlike other chains that require smart contracts, each project we develop can generate its own token directly on the Cardano system. This unique feature eliminates the need for a smart contract while ensuring the security profile of our tokens is backed by the robustness of the Cardano system.

The title of this proposal recognizes the brilliant minds exploring out-of-the-box solutions to devise groundbreaking blockchain technologies. However, I firmly believe that there is significant untapped potential within established frameworks. We believe the MIT project exemplifies the successful utilization of tried and tested, inside-the-box technology that Cardano has already developed and extensively tested.

With that said, we also plan on using some outside-the-box technology to implement our lending and borrowing strategy. There have been many products developed already that we plan to leverage with our asset, real estate. By backing lending with real assets we ensure that borrowers can put their equity to work while the asset they borrowed against continues to grow.

[IMPACT] How do you intend to measure the success of your project?

There are really two main metrics for success:

1. First metric is pretty straightforward: how many people are using / investing in the MIT.
2. The success of our product is directly linked to the number of users purchasing MIT tokens for different projects.
3. It's important to note that we do not accept open-ended amounts. Each investment will have a specific funding target, and if that target is not met, we will refund all proceeds.
4. Each token will be governed by a smart contract that handles the return of funds if the project's funding threshold is not reached.
5. The second metric, which I consider more critical for long-term success, is the number of new individuals we introduce to the Cardano and blockchain community.
6. This metric does not solely determine our success or failure as a company.
7. It is possible to achieve success even with the participation of current blockchain/Cardano users alone.
8. With the current size of the community, we anticipate being able to sell our investment properties successfully.
9. We believe that our MIT project, combined with Cardano's reputable safety measures, presents an above-average opportunity to bring Cardano into the mainstream.

We believe these two metrics, along with other goals listed below, will bring current Cardano enthusiasts onto our platform and also bring current real estate investors (but new Cardano holders) that are looking to diversify their property portfolio. We also believe investors, that may not have been able to invest in real estate (because of the high cost of entry), will also turn to us as their first foray into the real estate market.

[IMPACT] Please describe your plans to share the outputs and results of your project?

This project revolves around a straightforward token-based investment model. Any block explorer can readily track the number of tokens sold, determine whether the sales threshold within the designated timeframe was met, and confirm whether we fulfilled our obligation of refunding tokens if the full investment was not achieved.

Additionally, we will establish a company website that automatically updates this information in a user-friendly format for easy comprehension.

All of our lending and borrowing smart contracts will be open source and undergo rigorous audits.

To keep our community and investors well-informed, we will host regular YouTube/Rumble shows, providing updates on the progress of our developments and share property-specific details on various other social media platforms.

We commit to conducting regular audits of our bank accounts as investments are collected. We are actively exploring the possibility of providing real-time access to bank account balances, prioritizing safety in our discussions with the bank.

Furthermore, we welcome suggestions and are open to implementing measures that enhance transparency without compromising the security of funds.

[CAPABILITY/ FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability?

Our project's strength lies in our capability to deliver. As mentioned earlier, our team possesses extensive experience, which becomes evident when you look at their credentials.

We see our project encompassing several key parts. We need to build the backend and blockchain components, we have the task of marketing the project, and we need to develop and build the properties.

Build the backend and blockchain portion

Anthony Stachowitz is a seasoned professional in the blockchain and Cardano space since 2018. He has been involved in operating one of the initial small stake pools since the first available epoch. Additionally, he participated in the Plutus Pioneers program and served as the Head of Business Development for MLabs during the last crypto bull phase.

Anthony has fostered strong connections within the Cardano community and maintains ongoing communication with fellow professionals and developers. His extensive experience and deep understanding of the Cardano development process allow him to navigate development challenges on the Cardano blockchain with expertise, effectively avoiding potential pitfalls.

Market the project

John-Christian Shatraw, a co-founder of two startups, has played a crucial role in facilitating the connection between real-world assets and the blockchain. He was instrumental in introducing Fernando and Marcel, who were blockchain novices, to the MIT project.

Drawing from his experience with NATO, John brings a structured approach to his work. He successfully applied this structure to the realm of e-commerce and has spent over nine years as a freelance marketing expert specializing in SEO and PPC. Furthermore, John has also served as a business mentor at the University of Passau, further showcasing his expertise and commitment to fostering growth in the business community.

Build the properties

With over 30 years of experience as an architect and general contractor, Fernando Castello Roberts brings a wealth of expertise to the team. Throughout his career, he has successfully built properties in various locations including Canada, the Caribbean, Spain, and Argentina. He has dedicated his entire life to this profession.

Marcel Pelzer boasts more than 15 years in sales and is the proud owner of a real estate agency that collaborates closely with Fernando. Marcel's real estate experience extends across Spain, Germany, and the Caribbean. Currently, his Real Estate agency is the lead agency for an eight-figure development project on Steininger Island in the Bahamas. Marcel's contributions enhances our team's capabilities and strengthen our presence in the real estate market.

This expertise ensures that we possess the knowledge and skills necessary to deliver results with accountability and reliability.

[CAPABILITY/ FEASIBILITY] What are the main goals for the project and how will you validate if your approach is feasible?

The main goals of our MIT project are:

1. To use the Cardano blockchain in order to facilitate the democratization of investment in Real Estate.
2. To achieve an 85% rate or higher of tokens distribution to different wallets.
3. To achieve a 25% rate or higher distribution of individual investments to wallets that hold less than 1 token.
4. To achieve a 65% rate or higher distribution of tokens to new wallets.

To use the Cardano blockchain in order to facilitate the democratization of investment in Real Estate.

To fulfill the goal of using the Cardano blockchain for Real Estate investment democratization, we will develop our backend system. This system will enable a project listing, allowing investors to exchange fiat for tokens in their chosen projects. Additionally, it will incorporate a custody component for investors who prefer not to self-custody their tokens (though we strongly recommend self-custody and will provide education on how to do so). The system will also facilitate a lending and borrowing protocol based on an investor's property equity.

To achieve an 85% rate or higher of tokens distribution to different wallets.

In order to democratize investment, we aim to have more than 85% of each investment spread across multiple individuals. While we cannot enforce specific token purchase quantities or restrict allocation, we can monitor token distribution to different wallets. This information will help us adjust our marketing strategies to achieve a more equitable distribution in future projects.

To achieve a 25% rate or higher distribution of individual investments to wallets that hold less than 1 token.

We are particularly excited to track the metric of achieving a 25% or higher distribution of individual investments to wallets holding less than 1 token. Our goal is to empower small or micro-investors to participate in the Real Estate economy. If 25% or more of a specific investment is held by wallets with less than 1 token's worth of value, it indicates that investors with limited funds are taking advantage of our platform.

To achieve a 65% rate or higher distribution of tokens to new wallets.

Measuring the number of new participants introduced to Cardano and the blockchain is a challenging task. We employ an imperfect method by considering a small percentage of new wallets into which our tokens are transferred after purchase as new users. The reason for setting a high target of 65% is due to the inherent limitations of this statistic. We remain open to suggestions for alternative methods to track this metric.

[CAPABILITY/ FEASIBILITY] Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

We have set a 6-month timeline to build our project, and our milestones will align with this timeline. While our expected time to delivery is 6 months, we will continue to market and advertise throughout the process.

Certain components may be implemented before others. For example, we plan to mint tokens for our first 2 projects early on and initiate the collection of investments as soon as our fiat-to-tokens mechanism is functional. However, some parts of the project may come online after the initial 6-month period. Building liquidity for our lending and borrowing protocol, for instance, may require additional time, even though the technical aspects of the protocol will be operational within 6 months.

This project does not heavily rely on new technology. Although the lending and borrowing protocols may utilize newer technology that has already been developed by other teams on Cardano's Eutxo model, most of the necessary technology is already integrated within the Cardano protocol (inside the box).

Our milestones will encompass various aspects such as the development of our website, wallet integration, custodial services, lending and borrowing platform, and fiat on-ramp. Additionally, we will have non-technical milestones related to advertising and marketing.

Milestone 1: Website Development

Objective: Develop a dynamic and user-centric project website for the MIT project, showcasing its objectives, team members, and lucrative investment opportunities. The website will be regularly updated with the latest project-related information, creating a central hub for engagement with potential investors.

Milestone 2: Wallet Integration

Objective: Seamlessly integrate the MIT project's token with widely-used Cardano-compatible wallets, ensuring a streamlined and user-friendly experience for investors. By collaborating with wallet providers and implementing the necessary technical components, we aim to help investors to securely store, manage, and transact with their MIT tokens.

Milestone 3: Custodial Services Implementation

Objective: Establish a reliable custodial service within the MIT project ecosystem, catering to investors seeking trusted storage solutions. Our aim is to develop and deploy a secure custodial service that guarantees the safekeeping and accessibility of MIT tokens, providing investors with flexibility and peace of mind in token management. (We will also provide education on our platform to self custody as our aim is to have as many users as possible learn to do this.)

Milestone 4: Lending and Borrowing Platform

Objective: Create an innovative lending and borrowing platform that enables investors to leverage the equity of their tokenized real estate investments. By facilitating secure and transparent lending transactions within the MIT project, we strive to unlock liquidity and offer investors a unique opportunity to access funds based on their tokenized real assets.

Milestone 5: Fiat On-Ramp

Objective: Implement a seamless fiat-to-tokens mechanism, allowing investors to effortlessly convert their traditional currencies into MIT tokens for investment purposes. Through strategic collaborations with payment service providers and adherence to regulatory requirements, we aim to lower barriers to entry and attract a broader range of potential investors.

Milestone 6: Advertising and Marketing Campaign

Objective: Develop and execute a comprehensive advertising and marketing strategy to create widespread awareness about the MIT project and its investment prospects. Through captivating social media campaigns, engaging content creation, strategic partnerships, and community involvement initiatives, our goal is to enhance visibility, generate substantial investor interest, and foster a vibrant community around the MIT project, ultimately driving widespread adoption

We believe the current order of milestones is correct but reserve the right to adjust the order as the project develops. If we do adjust the order, It will be done before any funding is received.

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.

Milestone 1: Website Development

• Deliverables: Fully functional project website showcasing information about the MIT project, its goals, team members, and investment opportunities. The website will provide a user-friendly interface and be regularly updated with project-related information.
• Outputs: Live website accessible to potential investors and the wider community, serving as a central hub for project-related activities and updates.
• Intended Outcome: Establish an online presence for the MIT project, enabling easy access to information and fostering engagement with potential investors.

Milestone 2: Wallet Integration

• Deliverables: Integration of the MIT project's token with Cardano-compatible wallets, ensuring compatibility and ease of use for investors. This includes collaborating with wallet providers and implementing the necessary technical components.
• Outputs: Seamless integration of the MIT token with multiple Cardano wallets, allowing investors to securely store, manage, and transact with their tokens.
• Intended Outcome: Provide investors with a convenient and user-friendly experience, enabling them to interact with their MIT tokens through their preferred wallets.

Milestone 3: Custodial Services Implementation

• Deliverables: Development and deployment of a secure custodial service for MIT token holders who prefer to have their tokens stored by a trusted party. The custodial service will ensure the safekeeping and accessibility of tokens for users.
• Outputs: Operational custodial service integrated into the MIT project's ecosystem, offering token holders a reliable option for token storage and management.
• Intended Outcome: Provide flexibility and choice for investors by offering custodial services, ensuring the security and convenience of token management.

Milestone 4: Lending and Borrowing Platform

• Deliverables: Creation of a lending and borrowing platform that allows investors to utilize the equity of their tokenized real estate investments for borrowing purposes. The platform will facilitate secure and transparent lending transactions within the MIT project.
• Outputs: Functional lending and borrowing platform integrated with the MIT project, enabling investors to access funds based on their tokenized real estate assets.
• Intended Outcome: Unlock liquidity for investors by providing a lending mechanism backed by the value of their real estate investments, promoting financial flexibility and potential returns.

Milestone 5: Fiat On-Ramp

• Deliverables: Implementation of a seamless fiat-to-tokens mechanism, enabling investors to convert their fiat currency into MIT tokens for investment purposes. This may involve collaborations with payment service providers and adherence to regulatory requirements.
• Outputs: Operational fiat on-ramp system integrated within the MIT project's platform, allowing investors to conveniently enter the real estate investment ecosystem using traditional currencies.
• Intended Outcome: Lower barriers to entry for potential investors by offering a user-friendly and regulated fiat on-ramp, expanding the accessibility and participation in the MIT project.

Milestone 6: Advertising and Marketing Campaign

• Deliverables: Development and execution of an advertising and marketing strategy to create awareness about the MIT project and attract potential investors. This may involve various channels such as social media campaigns, content creation, partnerships, and community engagement initiatives.
• Outputs: Deployed marketing campaigns and promotional materials aimed at reaching target audiences, generating interest, and driving participation in the MIT project.
• Intended Outcome: Increase visibility, generate investor interest, and foster community engagement to achieve broader adoption of the MIT project and its investment opportunities.

By accomplishing these milestones, we aim to successfully develop and promote the MIT project, ultimately democratizing real estate investment through the utilization of the Cardano blockchain.

[RESOURCES & VALUE FOR MONEY] Please provide a detailed budget breakdown of the proposed work and resources.

As of the last day of proposal submission, which is July 12, 2023, Cardano is valued at approximately $0.29. For our project budget, we are allocating $90,000, equivalent to $15,000 per month for a duration of 6 months. Based on this valuation, the total amount of ADA requested is 310,345 ADA (calculated by rounding 0.29 * 90,000).

Like every other project, we are forced to become market speculators.

It is important for all projects to outline their plans in the event of ADA price fluctuations. Here is our approach:

• If the price of ADA significantly decreases:
• We will prioritize and adjust our milestones to ensure the completion of the majority of them, rather than starting multiple milestones without finishing any.
• Technical milestones will take precedence over marketing and advertising, as our primary focus is to ensure the functionality of our product.
• We will maintain transparency with our community, keeping them informed about all decisions made during this period.
• If the price of ADA significantly increases:
• Any surplus ADA will be allocated to liquidity.
• We will maintain transparency with our community, sharing all decisions regarding the use of the additional ADA.

By being transparent and accountable, we aim to navigate ADA price fluctuations responsibly and in the best interest of our project and community.

Budget Allocation with Estimated Hours:

1. Website Development - $15,000:
2. Front-end design and development: 150 hours
3. Back-end functionality and integration: 100 hours
4. User interface optimization: 50 hours
5. Wallet Integration - $10,000:
6. Integration with Cardano blockchain: 80 hours
7. Security and encryption implementation: 60 hours
8. User testing and feedback incorporation: 40 hours
9. Custodial Services Implementation - $12,000:
10. Development of secure custodial infrastructure: 100 hours
11. Compliance with regulatory requirements: 80 hours
12. Implementation of multi-factor authentication: 40 hours
13. Lending and Borrowing Platform - $20,000:
14. Smart contract development and testing: 160 hours
15. Integration with existing protocols: 120 hours
16. User interface design and functionality: 80 hours
17. Fiat On-Ramp - $13,000:
18. Integration with payment gateways: 100 hours
19. Compliance with KYC/AML regulations: 80 hours
20. Secure transaction processing: 60 hours
21. Advertising and Marketing Campaign - $20,000:
22. Social media advertising: 160 hours
23. Content creation and distribution: 120 hours
24. Influencer partnerships and promotions: 80 hours
25. Analytics and campaign tracking: 40 hours

Please note that the estimated hours provided can vary depending on the complexity of the project, external team expertise, and other factors.

[RESOURCES & VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

The allocated budget represents value for money for the Cardano ecosystem in several ways:

1. Efficient Resource Allocation: The budget distribution ensures that resources are allocated strategically across different milestones. By assigning funds to specific deliverables, it ensures that the project progresses systematically and maximizes the utilization of resources.
2. Milestone Completion: The budget allows for the completion of key milestones within the project. Each milestone represents a significant step forward in achieving the project's objectives. By allocating funds accordingly, it ensures that these milestones are achieved in a timely manner, contributing to the overall progress and success of the project.
3. Technical Development and Infrastructure: The budget supports the development of technical aspects such as website development, wallet integration, custodial services, and the lending and borrowing platform. These components are crucial for the project's functionality and will enhance the overall experience for users within the Cardano ecosystem.
4. Marketing and Advertising: This investment aims to promote awareness and adoption of the project within the Cardano community and beyond. By effectively marketing the project, it increases its visibility and attracts more users and potential investors, contributing to the growth and expansion of the Cardano ecosystem.
5. Transparent Financial Management: The budget demonstrates a commitment to transparent financial management. By outlining the allocation of funds and providing detailed breakdowns, it instills trust and confidence in stakeholders. This transparency fosters accountability and ensures that funds are utilized responsibly and in line with the project's objectives.

Overall, the budget's allocation of funds aligns with the project's goals and objectives, supporting the development of essential components, promoting awareness, and facilitating the growth of the Cardano ecosystem. By utilizing the allocated funds effectively, it represents a value-for-money investment in advancing the Cardano platform and its broader community.

[IMPORTANT NOTE] The Applicant agreed to Fund10 rules and also that data in the Submission Form and other data provided by the project team during the course of the project will be publicly available.

I Accept